Arriving in Canada and not sure where to start? Establishing your financial situation will help you get off on the right foot.
Canada has been considered a cultural mosaic for almost 100 years, and with good reason. Indeed, one in five people living in Canada was born in another country. According to Statistics Canada, this percentage is the highest in 75 years. However, it is also said that four years after their arrival, one in five immigrants still has difficulty building social ties and obtaining support. In addition, one in ten immigrants still has financial concerns.
If you are a new Canadian, you should know that Canada offers resettlement assistance programs and immigrant loan programs to help you get settled.
It’s also essential to understand the basic financial steps to secure your financial future.
- Open a bank account
Opening a bank account allows you to establish a credit history and save it simply and securely. First, you need to go to a local bank and ask for help. Bank employees will be able to assess your needs and determine which options are best for you when it comes to your bank account.
In general, two pieces of identification are required to open an account, including one with a photo. The Canadian Bankers Association provides a list of all types of acceptable identification.
When you open an account as soon as possible after arriving in Canada, you have the checks you’ll need to rent an apartment and a place to deposit your wages when you start working. However, you may not need a job or money to deposit when you open your account.
- Start building your credit history
Besides opening a bank account, there are other ways to start building your credit history in Canada:
Apply for a credit card and pay off the balance each month before the due date.
Always pay your bills on time, including rent, hydro, cable, and phone.
Borrow small amounts from your bank and make payments on time.
Make regular payments for another asset, such as a car loan.
While you may have a strong credit history in your home country, you must demonstrate as a newcomer to Canada that it will be the same here. Foreign credit scores cannot be transferred between countries. However, it may be considered if you want to take out a loan or make a significant purchase, such as setting up a line of credit or buying a house.
